A version of PSIV using all the modern conventions like 3D models for characters could be really good. Sega's Ages remakes were budget titles though, so there would be little chance of a remake from that series using such features.
Maybe Sega dropped the idea of a PSIV game in the Generation series because of the cut scenes. Generation 1 & 2 both had completely new artwork, but the original games did not have very many cut scenes. PSIV's cut scenes included over 300 panels. That's a lot of artwork to recreate.